Blue Label Telecoms has gained approval from the Competition Commission to take control of mobile operator Cell C. Previously, Blue Label, via its wholly owned subsidiary, The Prepaid Company (TPC), held less than 50% of South Africa’s third mobile operator.
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The approval comes with specific conditions. “The commission has recommended that the Competition Tribunal approves the merger subject to conditions to mitigate information exchange concerns, and conditions ensuring the continued use of certain prepaid airtime distribution channels for a period, post-merger,” the regulator stated on Tuesday, without providing further details.
Additionally, Blue Label, through TPC, has submitted an application to communications regulator Icasa seeking approval to transfer Cell C’s spectrum licenses to TPC.
Presently, Blue Label holds a non-controlling 49.5% stake in Cell C, with plans to acquire an additional 4.04% stake to raise its ownership to 53.5%.
“Cell C will retain full control of its spectrum in this operating model and will continue to operate as a licensee providing mobile services to its customer base as a mobile network operator,” Cell C stated in a December release.
In September, Levy expressed Blue Label’s interest in bringing in a new strategic investor to Cell C.
“Cell C will have a ‘big brother’. Whoever that may be, that is coming – another investor, for sure,” he stated in an interview. “It will be a value-adding investor. It will not be a money person; it will be someone who adds value in strategy. It could be a bank or a retailer or another network, but it will be a strategic partner. And I don’t see that in five years, I see that in the next two to three years.”
